The 26-year-old has struggled to nail down a place in Pep Guardiola's starting XI since the latter stages of the previous campaign, which has put doubts over his future at the club.
Sterling, who currently earns around £300,000-per-week at Manchester City, was linked with a move away in the summer, but a transfer could not materialise owing to the financial restraints of the COVID-19 pandemic and his poor run of form.
The rising uncertainty surrounding his future at City has seen Sterling heavily linked with a move to Barcelona, who consider a swoop for the England star 'more feasible' than a move for RB Leipzig's Dani Olmo.
According to the information of Martin Blackburn of The Sun, City will reject all approaches from clubs to sign the winger in January, with the Manchester side looking to persuade the attacker to renew his contract at the Etihad Stadium.
It has further been stated that talks over a fresh deal between the club and Sterling's representatives have stalled for now, which has seen the former Liverpool man linked with Arsenal, who have reportedly made him their top transfer target.
Moreover, it has been mentioned that Sterling will wait and assess his situation at City in regards to game-time before putting pen to paper and extending his current deal, which runs until 2023.
After a slow start to the new campaign, where he has often been played at striker, it remains to be seen what the future holds for the England international - who played a key role in his country's run to the European Championship final in the summer.
Despite their ongoing financial troubles, recent reports have suggested that Barcelona are planning to snatch the winger on loan from City, who need to 'make a decision' on Sterling's future in the east side of Manchester, according to Italian journalist Fabrizio Romano.
It has also been reported that Sterling is keen to join Barcelona, and that a transfer failed to materialise this summer owing to City's failure in signing a striker, which could have seen at least one top player head towards the exit door.
You can follow us for live updates here: @City_Xtra